Marketers must raise their game when it comes to mobile, with far too many brands wasting money promoting app downloads at the expense of engagement, says the Australian boss of personalised retargeting and advertising company, Criteo.
It's MD Jeremy Crooks, said with app conversion rates almost four times higher than on mobile browsers, brands are under mounting pressure to boost their app performance if they want to lift revenue and stay ahead of competitors.
“There are millions of apps out there, but many Australian brands focus on driving downloads rather than driving engagement,” Crooks said.
Criteo, which is listed on the NASDAQ and was founded in France, says its new research shows that only a quarter of all downloads are actually used, with many users leaving apps inactive on their phones.
For retailers that have prioritised app development and enriched the user experience, their apps are generating about 60% of all mobile revenue.
“Customers are jumping from one device to another and the path to purchase journey looks a whole lot different than it did a few years ago. In fact, half of online transactions are being completed across multiple devices,” Crooks said.
CEO of mobile specialist agency Mnet, Scott Player, said it's unsurprising consumers will trial and adopt or discard any form of new technology, especially if the product or app doesn’t quickly meet their expectations.
“If a client has committed to building an app, then they must spend the time upfront ensuring the overall experience provides something of value to the consumer and the value is delivered in an easy to use, seamless mobile experience,” he said.
While having a long-term approach in mobile is essential, Player said, apps can be developed for short-term purposes and provide valuable returns, with the KIA Game On app as one example.
Co-founder of marketing platform, Carnival, Cody Bunea, said: "When used in isolation, 'downloads' as a metric give no indication to the quality of a user base. What use are downloads if users are uninstalling your app after using it? You can buy downloads, but not loyalty.”
Crooks said it was crucial for brands to acquire new users at the right time of year, personalise content and focus on re-engaging existing customers if they want to ensure consumers continue to stay engaged with their apps.
According to Criteo's State Of Mobile Commerce 2015 report, conversion rates on apps are twice as high as the desktop for retail and average order value on apps is $116, compared to $100 on desktop. Smartphones generate 60% of mobile transactions and the majority of purchases for top quartile retailers.
Critero's ads reach about one billion people each month, and in September 2014 about 12.8 million Australians were exposed to the online giant's personalised ads.
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